With the new Goods and Service Tax (GST) coming into effect in July, Bajaj Auto is passing the benefit to its customers
Bajaj Auto wants to pass on the expected cost saving that will effect from GST implementation. Basically, after GST is implemented on 1 July, it will result in cost savings to manufacturers after which partly or all of it will ultimately be passed down to the customers.
Under GST, most of the vehicles will attract a tax rate of 28 per cent, lower than the current rate of 30 per cent. Motorcycles over 350 cc of engine capacity will attract an additional 3 per cent. The saving amount will be ranging from Rs.1,100 to Rs.4,500 depending on the model of the motorcycle and the State it is purchased in.
Eric Vas, President, Motorcycle Business, Bajaj Auto says, “As a responsible corporate Bajaj Auto is happy to pass on the price saving accruing out of GST to its customers. With the GST implementation just around the corner we felt that it would be appropriate to pass on this significant savings to customers. Bajaj Auto is proud to be the first and only motorcycle company in India, to offer post GST reduced prices to customers even before the implementation date. Customers no longer need to wait for 1st July to buy their desired Bajaj Motorcycle.”
Bajaj is one of the first to make the price reduction announcement, and we are sure other two-wheeler manufacturers will soon follow suit.